What information must be reported on a 1099-R?

The 1099-R form is specifically designed to report distributions from retirement accounts, including pensions, annuities, IRAs, and other types of retirement plans. When an individual receives a distribution from these accounts, the financial institution or plan administrator is required to report the amount distributed to the IRS and the recipient using this form. This ensures that the income reported is accurately accounted for and taxed appropriately, as these distributions can be subject to income tax.

In contrast to the correct option, the other choices pertain to different types of income that are reported on other forms. For instance, property sales would typically be reported on a 1099-S, wages from employment are reported on a W-2 form, and interest earned from savings accounts is usually documented on a 1099-INT. Each tax reporting form serves a unique purpose for different types of income, helping the IRS track and regulate various forms of income received by taxpayers.